Culture: Economics:


Ethical Mercantile Banking

And Intelligent Educational Systems - Part II


Keys to a New Liberated Society Beyond Suspicion


by Mr. Michael Mifsud

Entrepreneur, Writer, Art Collector and Critic

Malaga, Spain


This is Part II of a two-part series. Readers can review Part I of this paper here.


Ethics Against Diplomacy:


But first we must look at the most critical of the fear-laden concepts which drive the political systems to their own stockades.  The first and foremost is the deliberate avoidance of public consultation – the referendum – in everyday governmental decision.  It is understandable but there is a middle line which need not necessarily make decision making all that difficult.  Perhaps it is better to dismantle the old fashioned and often counterproductive diplomatic system immersed in ingenuousness and cultural lore which  merely delays the inevitable. Referendums  cannot be compared with the needs of the ancient city-states which created the democratic concept.  It would be incapable of providing easy answers in terms of time and expense although  it would also deter bad decision making driven by party and egoistic policies. Given the problems that such constant referrals to a mainly apathetic public could create, is there an alternative to save the day? There are many of course as time and thought can readily come up with,  but all of which requires good men at the helm and the rigid use of ethical standards to rationalize sentiment and allow for sound delegation of authority in the comfort that the guiding forces greased the way.  In times of old “this is evidently wrong” as a cultural gesture  (with heavily imbued ethical standards) enabled the virtues  to survive and the way forward was less cluttered with the weak and selfish arguments of mediocrity.  The media as of old played a valuable part whilst still retaining its patrons.  When newspapers started to play with reality and entered the advertisers’ world, the struggle for  social survival began and by then it was too late to force a come back. The likes of Lord Thomson opened the way to the enslavement of news and the concept of profitable chains of media units.  The pillar which worked better individually as a social instrument with proud editors was gone as any traditional journalist can vouch for.  What had taken its place was a viable, lucrative process of great economic import with an extremely dangerous overall owner able to match the bankers in their social influence. Whoever had the purse had the power was being replaced by whoever had the voice had the influence. The two institutions were to go adrift and presently facing extinction  –  the one through abusive practices and the second through alienation with canned, tasty but meaningless feed. The net with equally irrelevant online versions have not redressed the issue and today far too many people have missed the news and seemingly care little about its possible contents.  Political debate and news are zapped across and even referendums would be no more than purely invented views.


Factors upon factors have to be taken into account before a society can dismantle and displace its faulty parts, but a model society based on sound principles and disciplined education along ethical line is easier to set up than to deal with malfunctioning institutions and corrupt power traders which promise worse breakdowns. The Hapsburgs , Hitler and Stalin merely fell into the war trap forced by disintegrating societies deprived of almost everything,  but the fact that they could do that is an issue that can be prevented with careful use of institutional instruments.   It is sad to even begin to absorb the essence of that unnecessary pain and suffering under deprivation and loss of  guidance or even look at war from those old clips of war scenes that were never shown in their time. How anyone can watch them without feeling the desolation of those utilized victims led to their slaughter for political reasons, is beyond any horrified moral human viewing the debris of so called  victory.   The moral of the story is that before history repeats itself once more, these staged human conflicts must never be allowed to take place whatever the aggravations and  that all malfunctioning social instruments that allowed it must be unplugged before they lead the wrong way again.   Easier and more flexible systems are worthy of study.  Liberal alignments within political controls which allow the human spirit to breathe through the maze and lose its nurtured fear of an intransigent enemy outside and within its own camp, can be put into place.


The War Machine in the Background:


What we have today in most highly developed countries is a war machine. Whoever wants to dispute that should spend time taking the constituents apart of the political powers and overwhelming controls hulking over  the defenseless electorate. 


But how much can be dismantled with a view to creating  a state of the art economy immune to outside controls?  How much can be done with a live system in the process of change for worse?  This and a myriad of questions come to mind when considering the fickleness of society and its tendency to react to criticism and alarm as has been happening with the awesome  Brexit affair that put enough doubt in the change to bring last ditch demonstrators out in the streets clamoring for what they cannot understand and never really appreciated in the first place. It shows the extent to which those who fed into the system can go to in order to keep things the way it suited them.  It shows how sovereignty can and has broken away from its predators for a future full of the traditional promises of a people who know how to win.


Given that change is not always considered as good as a rest, despite the saying, it is this mid vacuum of doubt that could cause the real problems.  Changing a derailing complete system  into an unfettered  venture is what should have happened ages ago and well before the smugness of complacency allowed ethical values and institutional standards to fall by the wayside.  For some however this untried territory is fraught with unknowns which threaten their neat understanding of their everyday indulgences like the second home and the double nationalities to choose the best from.  The alternative to change is perpetual dependence on the International banking system and the people behind it who should perhaps come out of the gloom for proper evaluation as to  ambitions and personal aspirations.  What of their religious and political identities.  Would we feel safe if for example the majority were of a totally different concept to our cultural and social ambitions? I need not go further. In any case this huge indebtedness to faceless committees where even the very survival of a nation, as happened to  Britain in the eighties, is unwarranted and threatening.  The lamentable one man show called Soros,  bankrupted millions and impoverished the leading Global nation whimsically for personal reasons. If the Stock Exchange had been of a different ilk, it would have never happened and if the bankers had not  bent double to accentuate the thrust so cowardly it would have not opened such a mortal wound.   If the incredibly weak  government had not given them so much rope,  interest rates could have been anchored and property values temporarily frozen intelligently rather than massacre all that talent and ambition. To date, not even a State apology to those who lost all including faith in their citizenship, has been forthcoming  when a mere slash by an enemy of the State paralyzed consumption, and employment, destroyed property values and put interest beyond the capability of borrowing to survive.  If ever we can talk about economic genocide it is what happened then and from which the UK in any case never really recovered.  It is however from these deadly ills that the new economic superstructures must take their directives from and against which no future aspirant to these attacks can ever find a window for.


A Banking System way Past its Prime:


Let us take a look at some of these, in order of priority, to see what we are facing and the most important pillar which is causing the gravest erosion in social equilibrium, shows up clearly as nothing less than the Banking system itself.  When looking for new rafters for a sound economic roof  independent of international  inimical influences, a name came to mind of a very brave and deeply perceptive historical figure who nearly made it for  Germany in the thirties had it not been misunderstood by none other than the very epitome of destruction – the Fuehrer  himself.   In fact, Gottfried Feder was not the cause of the attempted annihilation of the Jewish people but in his studies of the effects of manipulative and autonomous banking systems, he discovered a Jewish connection throughout that Hitler took for the enemy inside.  Feder however, was not concerned with who ran the banks by predominant presence but how the system could be geared to the needs of a society when gold ceased to be its value base. He decided that the system and its freedom  to choose its clients and objectives was too dangerous a loose cannon to have lying around in terms of economic  needs when clear objectives had to be reached.  He worked therefore to find an alternative to this source of  wealth  and constant investment which in Germany, at least, was not working in their direction.  His Manifesto, created mayhem in the world of finance but with some very visionary strokes based on hitherto uncharted territory he made it work without them, sending international capital finance packing and creating his own source of revenue via bills of exchange which swept throughout the whole system and validated import payments.


Today, in most of the world, what we call recession is an imbalance brought about by the lack of freedom within a very tight system which is not conducive to enterprise, growth and employment. Perhaps Italy is not that far off from its assertion that its own understanding of the country’s financial needs is different to that which the EU seeks as a result to impose at greater public stress.  Seeking cheap financing with the further loss of sovereignty and increased public pain, was not in this  Prime Minister’s book and without doubt neither in others within the Union.  It seems sensible to assume that unless the nature of the banking animal is genuinely clear, whatever the size of the Trojan horse,  further debt has to be pernicious when built in suppression comes with it.  Other States blind to the consequences of such addiction to continuous borrowing which perhaps they never intend to honor, are merely not aware of the dangers which lie ahead with or without their consent. Only evolved and naturally rich member States are able to withstand the temptation and especially if they are acutely proud of their own untouchable sovereignty.  Europe in that respect is a threat without even wondering what is behind their own government heads and which I suspect is none other than our global banking system. A merciless, predatory machine hardly likely to even remotely acknowledge such a spurious thing as traditional concepts of  cultural sovereignty.


However, as Feder commented, with open doors to these vast chambers of income and  havens for world capital, the temptation to accept  services through  indebtedness by the  power corridors  made them easy fixes for all ailments.  This easy way out for power politics ignored the  resultant servitude on demand.  In times of war or dire  political necessity however, such an unholy addiction  could not but bring sinister controls that interfered with the destiny of mankind.  Mr. Man-on-the-Street was to pay eventually with dwindling reserves beyond his capacity to survive, trapped in the debt spiral that would render him a pawn in any game.  When  world wealth is  drawn into that black hole, the fangs of war are not very far off.   Even if international capital in the  hands of the so called financial institutions  were offered to local bankers for cheap  distribution and amelioration of social services,  the benefits would and do carry  social suppressive conditions which on face value appear to be no more than an intention to keep the masses under the breadline. Such political manipulation is the origin of the angry reactions close to mutiny which are now throwing people against the law enforcement agencies.  Given the fear that mediatory  international forces have of these confrontations, it makes one wonder just how intent they are in maintaining that sinister breadline knowing that it discourages creative enterprise and wealth creation.  In Europe, despite the rising unemployment and the chronic levels in some areas, these financing so called rescue bids have not only allowed the disintegration of the middle classes but not even alleviated the rough edges of  real inflation or  staunched the indecent  frightening rise of  energy, food,  water and communication costs -  demands  that even the poor cannot avoid.  Where these thousands of millions of so called rescue funds ever went to is a subject curiously avoided by the media but apart from the odd criminal intervention it can be assumed that it went into other things dictated by the lenders. 


The banking scene today is very similar to that which faced Feder in those pre war days with unemployment becoming a major issue in many countries and wealth creation starved of entrepreneurial funding.   Presently, despite government propaganda to the contrary, it can only  be got from the banking intermediary pirates who poach off the interest free central bank offers to produce 20% interest packages plus another hidden 10% disguised as procurement, intermediary and legal charges. Once the assets have been tied in there is every chance that the lenders will take them over eventually for pittances. Despite being called private finance, the source of the loans can be traced to local banks. The ill prepared judges can do little more than look on quizzically when the borrowers fight back.


Politicians and usurious contractors, have always demanded their role in the filtering process of funds allocated for  employment and wealth creation and how they manage to prevent funds is anybody´s guess but for the average business head, they were not available despite directives to make them available. For the dire and dying but potentially strong, small and medium business that have always kept countries bread and butter supported even today, the funds never quite reached them. The resultant loss of these valuable  units of employment I high numbers, have gone unrecorded but figures presented by relevant associations would imply that as many as half of these went under without support of any kind.  High profile political and union  leaders in some European countries are in judicial processes today for that reason.  This alarming factor contrasted with the almost cynical,  free lashings of carefree funding of the giant industries and ailing parties. At least five member states of the European Union did so with relative impunity despite knowing what the funds were given for. In under subsistence level households, even energy subsidies were denied to the detriment of the family structure if not health. Recourse to loan sharks lost them whatever critical assets they may have had and sometimes that of their progenitors.  The economic damage was outrageous but it showed that democracy was a myth and that each individual country was controlled by its intermediaries no differently than what has always been known to happen in the desperate so called third world.  Recent public declarations by business associations in Southern Europe  refer to the fact that most business today are still in debt after an unbelievable recession going back at least a decade and that  most will die before they see the shoots of their much labored efforts.


The Bankers and their right to exist have been questioned regularly by business leaders despite the lack of proper media investigation which suggested quite clearly that even the press itself was in their clutches. It would be naïve to think otherwise when we see the shocking remains of  the “publish and be damned” proud rhetoric of earlier golden days. Clearly both Banking and publishing industries are rife for a thorough overhaul if not complete dismantling before the curtain comes down on societies bred specifically for what use the powers that be want to put them to.


Democracy  –  an  Embarrassment to the Privileged:


That democracy is on its last legs, wherever it can be found,  is a fact  (some African States actually applied to be released from their human rights commitments), but what is needed for that fact to become a cry for drastic reform  is the understanding that all change requires a period of gear neutrality before it can be pushed into drive again and for that purpose the citizen has the key. How to stimulate that understanding in an age of dulling mass propaganda, is the question.  Where tightening the belt was easily understood in most modern countries,  the plea would have to be to enter a no movement zone for the stripping and remodeling of the social changes to take gradual effect. The process will be outlined carefully in a second article specifically centered on the subject.


So far, most of us have identified the Banking networks and the central wealth bases of currency values outside the control of individual nations. In the absence of a fixed stock of gold or a given currency like the dollar through which international transactions were channeled, the matter becomes a little more complicated. For a given developed nation to find and apply an alternative within its own ranks, it is a an awesome speculative exercise. The question is whether a return to a precious commodity or a calculated wealth evaluation economic system is really an answer. For full political independence there has to be a currency  anchorage in the form of acceptable guarantees or a fixed commodity holding like gold to do the trick.  A recognized international funding countries like Switzerland or Lichtenstein however can commit itself to a country they would feel comfortable with but it is doubtful whether they would do anything that could upset the general banking powers. Feder thought that manual labor itself, from which we have to assume that he means “productive manual labor” could be a currency evaluation indicator fixed by a complex system of statistical analysis in constant flux.  This would mean that the well known ills of government employment  –  like three men to do the work of one in the private sector, would create uncertainties and do what it did to the Communist system eventually, so its controlling complexities would have hardly stood the test of time.   However it seemed a possibility that would lend credence to other less accident proof alternatives.  The starting premise was that a money issuer would be held responsible for the correct flow of currency in the internal market that could be seen to be fair and sustainable to the outsider supplier.  For the moment however, the controlled  system that has kept China, for example, in business and growth, is not too difficult understand in this context without western , exporters  questioning  the validity of the payments in terms of their own local or internationally-linked currency. In fact, the key was the low cost of living, labor costs and relative family income.  These kept export prices at a level of well known unfair trading and continues to do so.  Where the value of the currency came from defied analysis but it was understood that it was downgraded with slave labor and direct manipulation of international markets that boosted exports. Other eastern countries followed suit and achieved similar results.  The price of anything after all is what people are prepared to pay for it so such unfair competition not only gave results but created sufficient wealth to enable the gruesome sacrifice to pay for the gradual improvement of the generations to come. For Western countries however with high ethical values, this is not the answer.


If a new system has to be put into place then that factor has to be taken well into account and accept that  the incipient system faces an initial period of at least two decades to see the roots push up the first shoots and measure the degree of confidence that would give stability to the new economy. Self sufficiency in production without need to import in those early days is also a path to follow.  America did it and  not only became an international anchor  but literally became an undisputed leader of world affairs.  Between these two points lies a world of possibilities that could turn a drastic economic reforms into winning bets devoid of outside influence.


What is also quite clear is that the banking fraternity, already well meshed into the economies of other powerful countries, could well attempt to block a system which did not include them.  However, European dissidents are beginning to supply some of the answers by refusing to keep their citizens on the poverty line and prepared to defy the Union whatever the risk to their status.  Unfortunately whilst tied to the agreements of their union commitments there is very little chance of being able to survive whilst so doing without civil riots and possible social disintegration as nearly happened in Greece. Britain already has a taste of the effects of withdrawal but what will save her will be the strength of her underlying prestige and international influence. In fact she can safely walk out without fear of anything other than a short period of adjustment and Churchillian public support for a belt tightening diet whilst new growth settles in. Essentially what these Union dissidents  are doing is defying the banking system which may well be a lesson to be learnt if the threatening EU penalties fail to reverse the stance. The wobble in many of the European member states point in that direction but then the necessary economic controls that should have followed such loose funding were never in place which makes one wonder whether this had connotations of irrelevance in support of other hidden tactical motives.


But how would a banking system allow itself to be dismantled alive?  The obvious answer is “ overall nationalization” to prevent the Soros factor which crippled Britain in the late eighties and kept her in recession for over ten years.  It is this sort of tragic, undeserved lesson that gives validity to the question of the removal of the  restrictive banking system with its global repressive network before it falls into the wrong hands if it is not already there.  A doomsday program individually tailored by each nation that values its sovereignty and culture  is asking to be set up and shrug off the unwilling guy ropes that no longer guarantee to keep the social structures firmly enough in place. Perhaps then  the now confused and dispirited populace can be addressed with a new sincerity that such an approach for support to a new world order requires for a smooth transition.  That should be the agenda of  the new approach at Davos gatherings above everything else. Going it alone means emergence of natural alliances born of respect and friendly competition in a spirit of freedom to practice individual ways of life and beliefs not subject to invisible pressures brought about by economic demands based on  unsympathetic and perhaps dubious ambitions.


How would the investment funds and the giant corporations react to such a move towards government control of their own money system?  It is difficult to say, but with a nationalized banking industry  the threatening edge of the present international banking forces would be blunted considerably and if the process went to its natural end, it would cease to be anything  other than another avenue  in a competitive world for transaction of interest to both sides of the divide. From liberated countries there would be  only one voice and conflictive results would be channeled to new responsive  committees set up for the purpose. They would in effect act as a present day central bank except that it would not be subject to jitters and wrong decisions as continues to happen today.


The retail side of banking would be represented in a parallel system (commercial and personal) geared to meet both industrial and private needs and unlike today, manned by extremely qualified advisors trained to meet the needs of the small and medium sized industries at close quarters. Today branch managers are no more than policy salesmen geared to commission strategies and totally incapable of offering either business advise or financial help of any sort. It is this system which has excluded and eventually killed millions of  solid businesses caught in cash flow problems.  Regrettably, only a few decades ago the low cost overdraft was always at hand to lubricate accounts and as a result the post war period  up to  the late seventies saw the growth of rags to riches right across whole countries.   In other words  -   a system of tightly regulated merchant and family banks designed and set up to provide both learning and financial support with specialized university trained personnel which does not exist in banking today even at regional administrative offices. Just standing in long queues in pitiful slogan plastered branches is enough to determine that the whole objective is no more than gleaning diminishing funds and selling mortgage and saving services.  Even then, the closure of thousands of retail units forewarn that banking continues to chase the speculative side of its wealth creation as the main base for its now highly questionable existence. The damage has gone too far and the name itself already conjures up images of insidious  hidden charges, lack of support, incompetence and even malpractice as has been seen in recent Court judgments.


It therefore looks as if  even the word bank would have to be  exchanged with totally different inferences like Business Economic Agencies, Housing Investment Centers, Personal Saving Bureau etc  They could provide a savings and credit system of far less complexity and cost and for which licenses any capable member of the public with sufficient initial capital could apply for.  Both collection and use of funds would be covered by Government guarantees in the form of  computerized validation certificates.  Collective speculative and discriminatory banking practices would come to an end. Such a move is but one of the major changes that can bring back hope for fear ridden citizens throughout the world,  but mainly one designed  to get motivation back into the financial sector work force and the visionaries whose discoveries and applications  have brought wealth and support to the very families who are now subjected to breadline existence indefinitely.  But how to get there would involve either the instant nationalization of the whole banking structure which is already in place with respect to individual rescue schemes, or allowed to run parallel to the new structures until such time as it dismantled its unacceptable practices and fed through into the new system as a desirable alternative.



Life Beyond the Banks and Shallow Education:


With the removal of the banking threat and which has now outlived its usefulness and the installation of a new generation of economic advisory outlets geared to ensure that both productive forces and family security interests are on proper rails, the stage is set for a valuation of  national assets to establish a currency value of money in circulation.  This home-grown, self-installed sense of values attached to real tangible assets in its myriad forms would stand the test of any accusations of fraudulent representations from outside.  Both the valuations at any time and the gradual development of internationally and democratically appointed, guardian institutions can be linked to similar abroad in countries which have followed the same patterns. Transparency and its safeguards  free from the corruptive past would start afresh encapsulated in bodies designed to do the job properly without fear of abuse.  The antagonists and vested interests themselves would find it difficult to undermine a transparent system supervised by professional international agencies unattached to any political or ideological factor like those in existence today.


Many modern countries with good trading figures, as mentioned previously,  have grown out of self valued currencies to capture world markets and often betraying their own nationals with the  perpetuation of  the concept of cheap slave labor.  This benefitted, through sheer volume of traffic,  the moguls of the industries and corrupt politicians, whilst millions destroyed their health to be able to barely feed their own families. China Japan and India are a good example.  Cheap products in vast volumes kept hunger at bay but only just despite the lack of substance in the currency. Despite the moral issues, it worked. A newly attached currency in a developed country can afford healthy well paid labor forces for as long as productivity and national asset values could be determined -  as of course they can. What I am saying that ethically, without these perversions,  an unshackled currency can achieve and maintain its import related value through transparency and quality of effort. The buyers will determine what they are prepared to pay and will not question the rate of exchange.


With a new banking system based on ethical and dynamic values of sound mercantile directives, the creation of new generation of thriving industries would wipe out unemployment and work hand in hand with educational authorities to produce the kind of labor and executive required at any stage.  If  both educational  and professional advisory banking systems grew strong out of competitiveness the end products would no doubt reach levels that always made many a country great before others even managed to get off the ground. In short -  back to basics and transparency in ethically founded societies is the only way forward to solving the many economic ills festering in so called modern democratic countries today.



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